The Charter of the American National Red Cross: Current Issues and Proposed Changes

Publication Date: March 2007

Publisher: Library of Congress. Congressional Research Service

Author(s):

Research Area: Government

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Abstract:

On February 16, 2007, S. 655, a bill to revise the charter of the American National Red Cross (ANRC), was introduced in the Senate and referred to the Senate Committee on the Judiciary. S. 655 is very similar to H.R. 6343, a bill that was introduced in the 109th Congress on December 5, 2006. S. 655 incorporates, as did H.R. 6343, many of the recommendations provided in the governance audit report that was commissioned by the ANRC and published in October 2006.

S. 655 would amend the charter to (1) permit the ANRC to conduct business as the "American Red Cross"; (2) reduce the board of governors from 50 members to between 12 and 25 members by March 31, 2009, and to between 12 and 20 members by March 31, 2012; (3) reduce presidential appointees to the board of governors from eight to one, with the President appointing the chairman of the board; (4) abolish local chapter selection of 30 board members and board selection of 12 members; (5) require each board member, except the presidential appointee, to be elected by delegates at the ANRC's annual convention; (6) establish a presidentially appointed ANRC advisory board of eight to 10 members, who would be officers of executive departments that work with the ANRC; (7) eliminate the requirement that the number of trustees overseeing the ANRC's endowment be fixed at nine; (8) authorize the Comptroller General "to review the corporation's involvement in any Federal program or activity that the Government carries out by law"; and (9) require the ANRC to establish an office of the ombudsman, which would report annually to Congress.

Observers both within and outside the ANRC have criticized its governance structure. They have argued that its board of governors is too large, has too many members who lack the skills and experience to serve adequately, and frequently interferes in the operations of the corporation. Congressional interest in the activities of the ANRC was heightened by the major role it played in providing relief to persons affected by Hurricanes Katrina and Rita. While there were many positive accounts regarding the ANRC's relief work, there also were reports of shortcomings in its performance.

This report provides a brief history of the charter of the ANRC; describes the recent congressional interest in the ANRC's governance, operations, and charter; reviews the ANRC's governance audit report and proposal to amend its charter; and describes congressional proposals to amend the charter. The report concludes with a series of questions and observations concerning the ANRC's current charter and the revisions proposed in recent legislation.

This report will be updated as events warrant.